Suzano S A : First Quarter 2024 Financial Statements

DocuSign Envelope ID: 122D66AC-DD7B-4A3F-A8A3-3E8DD506D115

DocuSign Envelope ID: 122D66AC-DD7B-4A3F-A8A3-3E8DD506D115

Suzano S.A.

INDEX

CONSOLIDATED BALANCE SHEET	1
CONSOLIDATED STATEMENTS OF INCOME (LOSS)	3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)	4
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY	5
CONSOLIDATED STATEMENTS OF CASH FLOW	6
1	COMPANY'S OPERATIONS	7
2	BASIS OF PREPARATION AND PRESENTATION OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL	11
		INFORMATION
3	SUMMARY OF MATERIAL ACCOUNTING POLICIES	11
4	FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT	12
5	CASH AND CASH EQUIVALENTS	24
6	MARKETABLE SECURITIES	24
7	TRADE ACCOUNTS RECEIVABLE	25
8	INVENTORIES	26
9	RECOVERABLE TAXES	27
10	ADVANCES TO SUPPLIERS	28
11	RELATED PARTIES	28
12	INCOME AND SOCIAL CONTRIBUTION TAXES	30
13	BIOLOGICAL ASSETS	34
14	INVESTMENTS	35
15	PROPERTY, PLANT AND EQUIPMENT	36
16	INTANGIBLE	37
17	TRADE ACCOUNTS PAYABLE	38
18	LOANS, FINANCING AND DEBENTURES	39
19	LEASES	42
20	PROVISION FOR JUDICIAL LIABILITIES	43
21	EMPLOYEE BENEFIT PLANS	45
22	SHARE-BASEDCOMPENSATION PLAN	46
23	LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES	47
24	SHAREHOLDERS' EQUITY	47
25	EARNINGS PER SHARE	48
26	NET FINANCIAL RESULT	49
27	NET SALES	50
28	SEGMENT INFORMATION	50
29	INCOME (EXPENSES) BY NATURE	52
30	EVENT AFTER THE REPORTING PERIOD	52
REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION	53
OPINION OF THE EXECUTIVE BOARD ON THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL	54
INFORMATION AND INDEPENDENT AUDITOR'S REPORT
EARNINGS RELEASE	55

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DocuSign Envelope ID: 122D66AC-DD7B-4A3F-A8A3-3E8DD506D115

Suzano S.A.

Unaudited condensed consolidated interim financial information

Three-month period ended March 31, 2024

(In thousands of R$, unless otherwise stated)

CONSOLIDATED BALANCE SHEET

	Note	03/31/2024	12/31/2023
ASSETS
CURRENT
Cash and cash equivalents	5	4,203,126	8,345,871
Marketable securities	6	14,671,943	12,823,886
Trade accounts receivable	7	6,634,735	6,848,454
Inventories	8	6,521,769	5,946,948
Recoverable taxes	9	886,659	888,539
Derivative financial instruments	4.5	1,961,643	2,676,526
Advances to suppliers	10	119,962	113,743
Other assets			871,969		925,105
Total current assets		35,871,806	38,569,072
NON-CURRENT
Marketable securities	6	448,077	443,400
Recoverable taxes	9	1,401,124	1,373,647
Deferred taxes	12	1,368,618	545,213
Derivative financial instruments	4.5	1,544,010	1,753,928
Advances to suppliers	10	2,472,894	2,242,229
Judicial deposits		401,758	361,693
Other assets		207,984	182,463
Biological assets	13	18,721,063	18,278,582
Investments	14	620,259	608,013
Property, plant and equipment	15	60,640,882	59,289,069
Right of use	19.1	5,146,347	5,196,631
Intangible	16		14,554,669		14,749,085
Total non-current assets			107,527,685		105,023,953
TOTAL ASSETS		143,399,491	143,593,025

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.

1

DocuSign Envelope ID: 122D66AC-DD7B-4A3F-A8A3-3E8DD506D115

Suzano S.A.

Unaudited condensed consolidated interim financial information

Three-month period ended March 31, 2024

(In thousands of R$, unless otherwise stated)

CONSOLIDATED BALANCE SHEET

	Note	03/31/2024	12/31/2023
LIABILITIES
CURRENT
Trade accounts payable	17	4,942,766	5,572,219
Loans, financing and debentures	18.1	5,043,997	4,758,247
Lease liabilities	19.2	759,368	753,399
Derivative financial instruments	4.5	82,556	578,763
Taxes payable		480,149	443,454
Payroll and charges		534,263	766,905
Liabilities for assets acquisitions and subsidiaries	23	94,770	93,405
Dividends and interest on own capital payable		7,078	1,316,528
Advances from customers		154,588	172,437
Other liabilities			314,662		339,683
Total current liabilities		12,414,197	14,795,040
NON-CURRENT
Loans, financing and debentures	18.1	73,905,644	72,414,445
Lease liabilities	19.2	5,534,430	5,490,383
Derivative financial instruments	4.5	2,507,363	1,857,309
Liabilities for assets acquisitions and subsidiaries	23	99,159	93,782
Provision for judicial liabilities	20.1	2,876,590	2,860,409
Employee benefit plans	21.2	839,185	833,683
Deferred taxes	12	12,596	11,377
Share-based compensation plans	22	320,806	268,489
Provision for loss on investments in associates	14	938
Advances from customers		74,715	74,715
Other liabilities			89,269		83,093
Total non-current liabilities			86,260,695		83,987,685
TOTAL LIABILITIES		98,674,892	98,782,725
SHAREHOLDERS' EQUITY	24
Share capital		9,235,546	9,235,546
Capital reserves		25,321	26,744
Treasury shares		(935,473)	(1,484,014)
Profit reserves		34,522,473	35,376,198
Other reserves		1,522,641	1,538,296
Retained earnings			233,267
Controlling shareholders'			44,603,775		44,692,770
Non-controlling interest			120,824		117,530
Total equity			44,724,599		44,810,300
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		143,399,491	143,593,025

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.

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DocuSign Envelope ID: 122D66AC-DD7B-4A3F-A8A3-3E8DD506D115

Suzano S.A.

Unaudited condensed consolidated interim financial information

Three-month period ended March 31, 2024

(In thousands of R$, unless otherwise stated)

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

	Note		03/31/2024		03/31/2023
NET SALES	27	9,458,602	11,276,383
Cost of sales	29		(5,699,870)		(5,968,674)
GROSS PROFIT		3,758,732	5,307,709
OPERATING INCOME (EXPENSES)
Selling	29	(653,415)	(604,353)
General and administrative	29	(502,975)	(390,235)
Income (expense) from associates and joint ventures	14	(9,907)	14,471
Other, net	29		(40,209)		(21,304)
OPERATING PROFIT BEFORE NET FINANCIAL INCOME (EXPENSES)		2,552,226	4,306,288
NET FINANCIAL INCOME (EXPENSES)	26
Financial expenses		(1,130,400)	(1,159,025)
Financial income		424,217	385,761
Derivative financial instruments		(634,537)	1,995,253
Monetary and exchange variations, net			(1,699,328)		1,248,118
NET INCOME (LOSS) BEFORE TAXES		(487,822)	6,776,395
Income and social contribution taxes
Current	12	(114,354)	(113,777)
Deferred	12		822,208		(1,419,825)
NET INCOME FOR THE PERIOD		220,032	5,242,793
Attributable to
Controlling shareholders'		215,392	5,237,371
Non-controlling interest		4,640	5,422
Earnings per share
Basic	25.1	0.16755	3.96896
Diluted	25.2	0.16747	3.96752

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.

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DocuSign Envelope ID: 122D66AC-DD7B-4A3F-A8A3-3E8DD506D115

Suzano S.A.

Unaudited condensed consolidated interim financial information

Three-month period ended March 31, 2024

(In thousands of R$, unless otherwise stated)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	03/31/2024		03/31/2023
Net income (loss) for the period	220,032	5,242,793
Other comprehensive income (loss)
Fair value investments in equity measured at fair value through other comprehensive
income	258	(634)
Tax effect on the fair value of investments	(88)		216
Items with no subsequent effect on income (loss)	170	(418)
Exchange rate variations on conversion of financial information of the subsidiaries
abroad	2,050	(20,439)
Items with subsequent effect on income (loss)	2,050		(20,439)
Total comprehensive income (loss)	222,252	5,221,936
Attributable to
Controlling shareholders'	217,612	5,216,514
Non-controlling interest	4,640	5,422

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.

4

DocuSign Envelope ID: 122D66AC-DD7B-4A3F-A8A3-3E8DD506D115

Suzano S.A.

Unaudited condensed consolidated interim financial information

Three-month period ended March 31, 2024

(In thousands of R$, unless otherwise stated)

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

																			Attributable to controlling shareholders'
					Capital
			Share capital		reserves												Profit reserves
			Share		Stock								Reserve for		Special						Retained				Non-
	Share		issuance		options		Treasury	Tax				capital		statutory		Investment	Other		earnings				controlling
	Capital		costs		granted		shares		incentives		Legal Reserve		increase		reserve		reserve		reserves		(losses)		Total		interest		Total equity
Balances at December 31, 2022	9,269,281	(33,735)	18,425	(2,120,324)		879,278	1,404,099	19,732,050	2,192,442				1,719,516			33,061,032	105,333	33,166,365
Total comprehensive income
Net income for the period																				5,237,371	5,237,371	5,422	5,242,793
Other comprehensive income (loss) for the period																			(20,857)			(20,857)			(20,857)
Transactions with shareholders
Stock options granted (Note 22.3)				2,080																	2,080			2,080
Shares granted (Note 22.3)
Share repurchase (note 24.2)						(87,243)															(87,243)			(87,243)
Unclaimed dividends forfeited						1,517,224							(1,517,224)
Fair value attributable to non-controlling interest																								(1,344)	(1,344)
Internal changes in equity
Realization of deemed cost, net of taxes																			(27,771)		27,771
Balances at March 31, 2023	9,269,281		(33,735)		20,505		(690,343)		879,278		1,404,099		19,732,050		675,218				1,670,888		5,265,142		38,192,383		109,411		38,301,794
Balances at December 31, 2023	9,269,281	(33,735)	26,744	(1,484,014)		998,237	1,847,109	15,670,952	1,887,576	14,972,324		1,538,296			44,692,770	117,530	44,810,300
Total comprehensive income
Net income for the period																				215,392	215,392	4,640	220,032
Other comprehensive income (loss) for the period																			2,220			2,220			2,220
Transactions with shareholders
Stock options granted (Note 22.3)				3,345																	3,345			3,345
Shares granted				(4,768)	4,768
Shares repurchased (Note 24.2)						(309,952)															(309,952)			(309,952)
Treasury shares cancelled (Note 24.2)						853,725					(813,258)	(40,467)
Fair value attributable to non-controlling interest																								(1,346)	(1,346)
Internal changes in equity
Realization of deemed cost, net of taxes																			(17,875)		17,875
Balances at March 31, 2024	9,269,281	(33,735)	25,321	(935,473)		998,237	1,847,109	14,857,694	1,847,109	14,972,324		1,522,641	233,267	44,603,775	120,824	44,724,599

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.

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DocuSign Envelope ID: 122D66AC-DD7B-4A3F-A8A3-3E8DD506D115

Suzano S.A.

Unaudited condensed consolidated interim financial information

Three-month period ended March 31, 2024

(In thousands of R$, unless otherwise stated)

CONSOLIDATED STATEMENTS OF CASH FLOW

	03/31/2024	03/31/2023
OPERATING ACTIVITIES
Net income for the period	220,032	5,242,793
Adjustment to
Depreciation, depletion and amortization	1,899,297	1,681,182
Depreciation of right of use (Note 19.1)	82,727	66,532
Interest expense on lease liabilities	109,806	111,966
Result from sale and disposal of property, plant and equipment and biological assets, net (Note 29)	47,554	42,748
Income (expense) from associates and joint ventures (Note 14)	9,907	(14,471)
Exchange rate and monetary variations, net (Note 26)	1,699,328	(1,248,118)
Interest expenses on financing, loans and debentures (Note 26)	1,230,849	1,152,740
Capitalized loan costs (Note 26)	(377,560)	(233,418)
Accrual of interest on marketable securities	(312,425)	(196,013)
Amortization of transaction costs, premium and discounts (Note 26)	17,308	16,206
Derivative gains, net (Note 26)	634,537	(1,995,253)
Deferred income tax and social contribution (Note 12.2)	(822,208)	1,419,825
Interest on actuarial liabilities (Note 21.2)	18,963	17,307
Provision for judicial liabilities, net (Note 20.1)	29,015	33,728
Tax litigation reduction program		14,031
Provision (reversal) for doubtful accounts, net (Note 7.3)	(1,317)	2,890
Provision (reversal) for inventory losses, net (Note 8.1)	8,030	(9,141)
Provision (reversal) for loss of ICMS credits, net (Note 9.1)	(23,763)	77,674
Other	15,121	7,308
Decrease (increase) in assets
Trade accounts receivable	373,116	74,816
Inventories	(298,050)	(371,738)
Recoverable taxes	8,363	(69,807)
Other assets	(15,658)	109,343
Increase (decrease) in liabilities
Trade accounts payable	(141,975)	(144,111)
Taxes payable	90,822	88,148
Payroll and charges	(232,642)	(226,775)
Other liabilities	(15,767)		(115,175)
Cash generated from operations	4,253,410		5,535,217
Payment of interest on financing, loans and debentures (Note 18.3)	(1,749,517)	(1,597,534)
Capitalized loan costs paid	377,560	233,418
Interest received on marketable securities	228,249	168,762
Payment of income taxes	(55,574)		(42,653)
Cash provided by operating activities	3,054,128	4,297,210
INVESTING ACTIVITIES
Additions to property, plant and equipment (Note 15)	(2,556,172)	(2,449,752)
Additions to intangible (Note 16)	(55,110)	(17)
Additions to biological assets (Note 13)	(1,631,502)	(1,393,291)
Proceeds from sales of property, plant and equipment and biological assets	26,719	24,941
Capital increase in affiliates (Note 14.3)	(18,908)	(20,263)
Marketable securities, net	(1,566,266)	(4,734,298)
Advances for acquisition (receipt) of wood from operations with development and partnerships	(235,775)		(261,018)
Cash used in investing activities	(6,037,014)	(8,833,698)
FINANCING ACTIVITIES
Proceeds from loans, financing and debentures (Note 18.3)	4,244,874	50,691
Proceeds from derivative transactions (Note 4.5.4)	444,112	365,724
Payment of loans, financing and debentures (Note 18.3)	(4,038,400)	(59,053)
Payment of leases (Note 19.2)	(320,643)	(292,682)
Payment of interest on own capital	(1,309,450)	5
Liabilities for assets acquisitions and subsidiaries		(16,929)
Shares repurchased (Note 24.2)	(309,952)		(87,243)
Cash provided (used) by financing activities	(1,289,459)		(39,487)
EXCHANGE VARIATION ON CASH AND CASH EQUIVALENTS	129,600	(168,712)
Decrease in cash and cash equivalents, net	(4,142,745)		(4,744,687)
At the beginning of the period	8,345,871	9,505,951
At the end of the period	4,203,126		4,761,264
Decrease in cash and cash equivalents, net	(4,142,745)	(4,744,687)

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.

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DocuSign Envelope ID: 122D66AC-DD7B-4A3F-A8A3-3E8DD506D115

Suzano S.A.

Notes to the unaudited condensed consolidated interim financial information

Three-month period ended March 31, 2024

.

1 COMPANY'S OPERATIONS

Suzano S.A. ("Suzano") and its subsidiaries (collectively the "Company") is a public company with its headquarters in Brazil, at Avenida Professor Magalhães Neto, No. 1,752 - 10th floor, rooms 1010 and 1011, Bairro Pituba, in the city of Salvador, State of Bahia, and its main business office in the city of São Paulo.

Suzano's shares are traded on B3 S.A. ("Brasil, Bolsa, Balcão - "B3"), listed in the New Market under the ticker SUZB3, and its American Depositary Receipts ("ADRs") in a ratio of 1 (one) per common share, Level II, are traded in the New York Stock Exchange ("NYSE") under the ticker SUZ.

The Company has 13 industrial units, located in the cities of Cachoeiro de Itapemirim and Aracruz (Espírito Santo State), Belém (Pará State), Eunápolis and Mucuri (Bahia State), Maracanaú (Ceará State), Imperatriz (Maranhão State), Jacareí, Limeira, Mogi das Cruzes and two units in Suzano, (São Paulo State) and Três Lagoas (Mato Grosso do Sul State). Additionally, it has four technology centers, 30 distribution centers and four ports, all located in Brazil.

These units produce hardwood pulp from eucalyptus, coated paper, paperboard, uncoated paper and cut size paper and packages of sanitary paper (consumer goods - tissue) to serve the domestic and foreign markets.

Pulp and paper are sold in foreign markets by Suzano, as well as through its wholly-owned subsidiaries and/or its sales offices in Argentina, Austria, China, Ecuador, United States of America and Singapore.

The Company's operations also include the commercial management of eucalyptus forest for its own use, the operation of port terminals, and the holding of interests, as a partner or shareholder, in other companies or enterprises, and the generation of electricity in the pulp production process and its commercialization.

The Company is controlled by Suzano Holding S.A., through a voting agreement whereby it holds 47.70% of the common shares of its share capital.

These unaudited condensed consolidated interim financial information was authorized by the Board of Directors on May 07, 2024.

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DocuSign Envelope ID: 122D66AC-DD7B-4A3F-A8A3-3E8DD506D115

Suzano S.A.

Notes to the unaudited condensed consolidated interim financial information

Three-month period ended March 31, 2024

1.1 Equity interests

The Company holds equity interests in the following entities:

						% equity interest
Entity/Type of investment		Main activity		Country		03/31/2024		12/31/2023
Consolidated
F&E Tecnologia do Brasil S.A. (Direct)	Biofuel production, except alcohol		Brazil	100.00%	100.00%
Fibria Celulose (USA) Inc. (Direct)	Business office		United States of America	100.00%	100.00%
Fibria Overseas Finance Ltd. (Direct) (1)	Financial fundraising		Cayman Island		100.00%
Fibria Terminal de Celulose de Santos SPE S.A. (Direct)	Port operations		Brazil	100.00%	100.00%
FuturaGene Ltd.	Biotechnology research and development		England	100.00%	100.00%
FuturaGene Delaware Inc. (Indirect)	Biotechnology research and development		United States of America	100.00%	100.00%
FuturaGene Israel Ltd. (Indirect)	Biotechnology research and development		Israel	100.00%	100.00%
FuturaGene Inc. (Indirect)	Biotechnology research and development		United States of America	100.00%	100.00%
Maxcel Empreendimentos e Participações S.A. (Direct)	Holding		Brazil	100.00%	100.00%
Itacel - Terminal de Celulose de Itaqui S.A. (Indirect)	Port operations		Brazil	100.00%	100.00%
Mucuri Energética S.A. (Direct)	Power generation and distribution		Brazil	100.00%	100.00%
Paineiras Logística e Transportes Ltda. (Direct)	Road freight transport		Brazil	100.00%	100.00%
Portocel - Terminal Espec. Barra do Riacho S.A. (Direct)	Port operations		Brazil	51.00%	51.00%
Projetos Especiais e Investimentos Ltda. (Direct)	Commercialization of equipment and parts		Brazil	100.00%	100.00%
SFBC Participações Ltda. (Direct)	Packaging production		Brazil	100.00%	100.00%
Stenfar S.A. Indl. Coml. Imp. Y. Exp. (Direct)	Commercialization of paper and computer materials		Argentina	100.00%	100.00%
Suzano Austria GmbH. (Direct)	Business office		Austria	100.00%	100.00%
Suzano Canada Inc. (Direct)	Lignin research and development		Canada	100.00%	100.00%
Suzano Ecuador S.A.S. (Direct)	Business office		Ecuador	100.00%	100.00%
		Industrialization and commercialization of cellulose, microfiber
Suzano Finland Oy (Direct)	cellulose and paper		Finland	100.00%	100.00%
Suzano International Finance B.V (Direct)	Financial fundraising		Netherlands	100.00%	100.00%
Suzano International Holding B.V. (Direct)	Holding		Netherlands	100.00%	100.00%
Suzano International Trade GmbH. (Direct)	Business office		Austria	100.00%	100.00%
Suzano Material Technology Development Ltd. (Direct)	Biotechnology research and development		China	100.00%	100.00%
Suzano Netherlands B.V. (Direct)	Financial fundraising		Netherlands	100.00%	100.00%

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